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The Parliamentary Under-Secretary of State for Wales (Fay Jones)
It is lovely to see you in the Chair, Mr Dowd. May I start by congratulating the hon. Member for Newport West (Ruth Jones) on securing this debate? I thank all right hon. and hon. Members for taking part. I hope the hon. Lady knows that I have great affection for her. We have been on opposite sides of many a Bill Committee over the last few years, and while we have often disagreed, we have always had fun doing so. It is a pleasure to respond to her debate. I very much enjoyed her speech and will refer to it throughout my contribution, but my favourite bit was the love letter to Labour women standing in marginal seats across Wales, which I thought was charming, if transparent. I congratulate all hon. Members who have taken part in this afternoon’s debate, who all happen to be women—
Fay Jones
Indeed. It shows what Welsh women can do when we get together.
Turning to the matter at hand, it is absolutely clear that the Conservative Government have a plan to deliver the long-term change that our country needs and that that plan is working. We have seen yet again today that inflation has fallen by over half its recent peak. The cost of living pressure is easing, and economic growth is more resilient than previously suggested. Debt is also forecast to fall. But the recovery is not over yet, and it is at risk from other political parties that do not have a plan for the economy and are instead making unfunded promises that will take us back to square one.
With the economy now turning a corner, the Chancellor has been able to make further tax cuts responsibly to boost growth across Wales and the UK by ensuring that working people keep more of their hard-earned money. Thanks to announcements made in both the autumn statement and the spring Budget, we have seen national insurance cuts benefit 1.2 million workers in Wales.
Dame Nia Griffith
Does the Minister accept that while national insurance cuts help all working people, they give a lot of money to the better off and are therefore a very blunt, not at all targeted way of helping people?
Fay Jones
The hon. Lady will not be surprised to know that I do not agree. I point her to the fact that at the end of 2010, a worker earning a wage of £15,000 was paying around £1,700 in taxation. Today—after 14 years of a Conservative Government—that amount is around £500. That shows that the Conservative party will deliver for working people.
Thanks to announcements made at the autumn statement and the spring Budget, we have seen national insurance cuts of about £701. Further tax cuts have been announced, included the freezing of fuel duty for yet another year, further easing cost of living pressures and saving the average car owner about £50 over a year. I believe that that is the 14th time since the Conservatives came to power in 2010 that we have frozen fuel duty. Alcohol duty has also been frozen once again to support Wales’s crucial hospitality industry. There was great news for Welsh SMEs, with the UK Government raising the VAT registration threshold to £90,000, building on last year’s autumn statement announcement that the UK Government are backing Welsh business through the British Business Bank’s £130 million investment fund for Wales.
I have listened to a lengthy list of complaints about the Conservative Government, but I remind Labour Members that while we are backing Welsh businesses, their own Government—their own colleagues in Cardiff Bay—have slashed business rates relief from 75% to 40%, meaning that hospitality businesses in Wales will pay thousands more in comparison to their colleagues in England.
The spring Budget also outlined the UK Government’s commitment to securing a diverse energy system with Wales at its heart, through the decision to purchase the Wylfa Newydd site on Ynys Môn. I welcome the shadow Minister’s rather muted celebration of that announcement. New nuclear developments have the potential to transform the north Wales economy, creating thousands of jobs while contributing to our net zero and energy security ambitions. Beyond nuclear, the renewable energy sector is also flourishing in Wales. The Government are supporting floating offshore wind by securing a long-term pipeline of projects in the Celtic sea and unlocking port infrastructure investment through the £160 million floating offshore wind manufacturing investment system. The Chancellor has also announced that the Crown Estate will bring forward an additional 12 GW of floating offshore wind in the Celtic sea in the 2030s.
The Budget was also a great moment for the creative industries—a sector that is hugely important to Wales’s economy. I am mindful of how many Members represent south Wales, so I am surprised this was not mentioned. Cardiff is now one of the UK’s largest media productions centres outside London. I was thrilled to see that the UK Government continue to back the creative sectors in Wales, with £500 million of new tax reliefs for the UK industry, as well as—a cause close to my own heart —a further £5 million for the agrifood industry in mid and north Wales, supporting research and development in our rural heartlands and helping to develop a more sustainable future for our vital agriculture sector. Again, this stands in stark contrast to the actions of the Welsh Labour Government, who have cut the rural affairs budget.
Fay Jones
I will not.
Indeed, this Government are working hard to ensure that Wales’s sector strengths are empowered to move to the next level. That is why we confirmed at the autumn statement that there will be two investment zones in Wales: one located across Cardiff and Newport—again, a surprising omission from the speeches of the hon. Members for Newport West and for Newport East (Jessica Morden) ; and a second zone located across Wrexham and Flintshire. The Chancellor confirmed at spring Budget that the programme has been extended in Wales from five to 10 years, with each receiving £160 million in funding over this period. This will supercharge key sectors across both locations, creating jobs delivering growth and prosperity across Wales.
A determination to create new jobs has also been spearheaded by Wales’s freeports programme, and here —the hon. Member for Newport West will be surprised to hear me say this—I will praise the Welsh Government for working hand in hand with the UK Government. The freeports programme was further supported once again at this Budget by the Chancellor when he announced that there would be an extension in tax relief from five years to 10 years, providing greater certainty to businesses looking to invest, delivering growth and jobs, and levelling up the economy.
The Chancellor’s spring Budget has provided Wales with substantial additional funding, as I think was mentioned by a number of hon. Members this afternoon. Back in 2021, a record-breaking £18 billion block grant was secured at the spending review. This year’s Budget announced almost £170 million of additional funding through the Barnett formula for 2024-25. That is on top of the £820 million already provided to the Welsh Government since that record-breaking grant in 2021—blowing away Labour’s and Plaid Cymru’s argument that Wales has been underfunded. This is almost an extra £1 billion in additional funding for the Welsh Government. On top of this record funding, the Prime Minister recently announced £60 million for apprenticeships in England. That will result in yet more money for the Welsh Government.
Despite the negativity of Members opposite, there is no doubt that the Welsh Government are adequately funded to deliver on their responsibilities. It is a question of priorities. While the Conservative Government are pouring billions of pounds into Wales and turbocharging the Welsh economy, it is the decisions of the Welsh Labour Government, propped up by Plaid Cymru, that are undercutting Welsh public services.
I was disappointed by the negative and miserable tone taken by Opposition Members during the debate in relation to levelling-up funding in Wales and was surprised to see them criticise the record amounts of funding received in their own local authorities. An announcement at the Budget added to our commitment of long-term regeneration and growth in Wales. I am thrilled that Rhyl is the latest of five Welsh towns to benefit from £20 million as part of the long-term plan for towns.
Liz Saville Roberts
Who will be responsible if public money is not spent on levelling up because it was provided late to Welsh local authorities by the UK Government?
Fay Jones
I can assure the right hon. Member that her local council, Gwynedd County Council, will be responsible for the almost £19 million that was received from levelling-up round 2, so there is great accountability there. Local authority leaders across Wales are delighted by the extra support that the UK Government are giving them, which amounts to £440 million over the three levelling-up fund rounds. From the Muni Arts Centre in Pontypridd to Old College on Aberystwyth’s seafront, and from Porthcawl pavilion to the Pontcysyllte aqueduct—I have lived in Wales all my life and I can never say that. [Interruption.] I will work on that one. There are new developments, too, from a new leisure centre in Caerphilly to the development of Cardiff Crossrail, and walkways and cycle paths in the Vale of Neath. Our places across Wales are changing for the better. That work is all building on the foundation being laid across our regions by Wales’s city and growth deals, with £790 million invested in all four of our regional economies. The UK Government back the Welsh economy and deliver on the needs of the people, businesses and communities in Wales.
During this afternoon’s debate, the shadow Minister—the hon. Member for Newport East—and the hon. Member for Newport West, who led the debate, challenged me a number of times on an unfunded tax cut, which I heard mentioned many times at Prime Minister’s questions this morning. I understand that the Labour party’s new argument is that the UK Government have promised to abolish national insurance. I am curious as to where that has come from. No such promise has ever been made and no policy has ever been announced. I heard the right hon. and learned Member for Holborn and St Pancras (Keir Starmer) make that claim earlier and I would be worried that he could be accused of misleading the House—something I know he would never do. That is Labour’s smokescreen: covering up for that fact that Labour has no plan. The long and the short of it is that this Government have an excellent record to show for themselves in Wales and the spring Budget only boosts it further.
Ruth Jones
It is good to be able to wind up and to have a little time before Divisions. I thank hon. Members who are here today. It is interesting that this is a women’s debate—obviously women get things done, so that is fine.
I thank my hon. Friend the Member for Llanelli (Dame Nia Griffith), the right hon. Member for Dwyfor Meirionnydd (Liz Saville Roberts) and my neighbour, my hon. Friend the Member for Newport East (Jessica Morden), who is the shadow Minister. It is great that they are all here to support today. I also thank my hon. Friend the Member for Pontypridd (Alex Davies-Jones) for her interventions.
It was great to have the Minister in her place. I would just like to be able to live in her world, because it seems to be a parallel universe to the one we are living in in Wales. When we knock on doors every week and ask whether people feel better or worse off, the most emphatic answer is, “We are much worse off than we were even a year ago.” That is something she needs to take back to her Government because we are here again—as my hon. Friend the Member for Newport East reminded me, we did this a year ago—and not only have things not got better; they have got worse in Wales. We need to be clear on that.
On my questions about the prepayment meters, supermarkets and other things, it would be really helpful if the Minister could write to me.
Fay Jones
The hon. Member is absolutely right to point out that I was remiss in not responding to that point and I will certainly write to her. If I may, I also neglected to respond to the shadow Minister when she raised the matter of her courageous constituents Mr and Mrs Smith, who have been vocal in campaigning for their son. I reiterate that the Government will publish the findings of the inquiry later this month and I will work with the hon. Lady to make sure her constituents get the answers they need.
Ruth Jones
I am grateful to the Minister for that intervention and for clarifying.